thursday brainstorming – part 1
1. Wave 4 (of wave 3) is confirmed and we entered wave 5 (of wave 3) down which should reach and even exceed the lows by 1-2 lower closes sometime next week. In SPX terms we could even drop as low as 1050-60 before bigger wave 4 kicks in for a rally as high as 1240 even before bigger wave 5 will send the SPX below 1000 but very likely have it test at least the 1000 mark.
Submitted by Tyler Durden on 08/17/2011 – 13:51
Courtesy of Fed dissident Dick Fisher, who made it clear that for the first time in history, the Fed is no longer in the plunge protection business, ES wasted no time to react appropriately and take out the 1184 technical support level, a $20+ swing in a few hours. Remember: the Treserve needs someone to boost purchases of Treasurys now that Obama is about to announce that the 2012 budget deficit will be a few hundred billion larger (funded, naturally, through bond issuance), so the old song and dance where the S&P has to be under 1000 for QE3 begins anew…